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Contents
Recent Developments......................................................... 3
ABOUT THIS INDUSTRY.................................. 5
Industry Definition................................................................5
Major Players...................................................................... 5
Main Activities..................................................................... 5
Supply Chain....................................................................... 6
INDUSTRY AT A GLANCE................................7
Executive Summary............................................................ 9
INDUSTRY PERFORMANCE..........................10
Key External Drivers.........................................................10
Current Performance........................................................11
INDUSTRY OUTLOOK.................................... 13
Outlook.............................................................................. 13
Industry Life Cycle.............................................................14
PRODUCTS & MARKETS............................... 15
Supply Chain..................................................................... 15
Products & Services.......................................................... 15
Demand Determinants...................................................... 16
Major Markets....................................................................17
International Trade............................................................ 17
GEOGRAPHIC BREAKDOWN........................ 19
Key Insights.......................................................................19
Business Locations........................................................... 22
COMPETITIVE LANDSCAPE..........................23
Market Share Concentration............................................. 23
Key Success Factors........................................................23
Cost Structure Benchmarks............................................. 24
Basis of Competition......................................................... 25
Barriers to Entry............................................................... 26
Industry Globalization........................................................27
MAJOR COMPANIES...................................... 28
Market Share Overview.....................................................28
Related Companies...........................................................28
Elevate Textiles, Inc.......................................................... 29
American & Efird LLC........................................................31
Uline, Inc........................................................................... 33
Texollini Company.............................................................35
United Bags, Inc................................................................ 37
OPERATING CONDITIONS............................ 39
Capital Intensity.................................................................39
Technology & Systems......................................................40
Revenue Volatility..............................................................41
Regulation & Policy........................................................... 41
Industry Assistance........................................................... 42
KEY STATISTICS............................................ 43
Industry Data..................................................................... 43
Annual Change..................................................................43
Key Ratios......................................................................... 43
Industry Financial Statement.............................................44
ADDITIONAL RESOURCES............................46
Additional Resources........................................................ 46
Industry Jargon..................................................................46
Glossary............................................................................ 46
CALL PREPARATION QUESTIONS............... 48
Role Specific Questions.................................................... 48
External Impacts Questions.............................................. 49
Internal Issues Questions..................................................49
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Recent
Developments
Spiraling inflation causes prices to rise
As the US economy began to rapidly improve after the peak of the coronavirus pandemic, the prolonged period of
record-low interest rates and governmental aid has contributed to record-high inflation levels. Rising inflation makes
the cost of everyday items more expensive, and when this rate increases at a faster rate than wages, then
consumers’ purchasing power begins to fall. As a result, demand for certain types of discretionary clothing items
may slightly decrease.
US factory jobs have expanded since the pandemic
After the peak of the coronavirus pandemic in 2020, unemployment levels were astronomical due to the government
restrictions that forced many operators to shut down to help mitigate the spread of the virus. In addition, as the globe
shut down briefly in 2020, business owners and consumers began to realize how much the United States depends
on foreign countries for the manufacturing of various products. With the continued bottlenecks, many businesses
have begun to increase their manufacturing production within the US. In addition, an influx in governmental
legislations and subsidies to boost domestic manufacturing also contributed to the rise in factory workers; products
with relatively steady demand that are relatively simple to manufacture have endured some of the most robust
growth, as textile products are not the most challenging to assemble and are required for a wide range of industries.
This section last updated April 18, 2023
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About IBISWorld
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About This Industry
Industry Definition This industry is a collection of a variety of textile manufacturers. Most notably, establishments categorized in this
industry spin yarn from various fibers, manufacture woven and nonwoven fabrics, produce window curtains and
drapes and finish and coat an array of textile products.
Major Players Elevate Textiles
American & Efird
Uline
Texollini Company
United Bags
Lafayette Textile Industries
Richline Textiles
California Cloth Foundry
Main Activities The primary activities of this industry are:
Spinning yarn
Woven fabrics
Nonwoven fabrics
Knit fabrics
Curtains and drapes
Narrow fabrics or ribbon
Textile bags
Coating fabrics
The major products and services in this industry are:
Yarn, fiber and thread
Woven and knit fabrics
Nonwoven fabrics
Finished and coated fabrics
Curtains and linens
Textile bags and canvas
Other
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Supply Chain
SIMILAR INDUSTRIES
Apparel Knitting Mills in the US Cut and Sew Manufacturers in the
US
Dye & Pigment Manufacturing in
the US
Synthetic Fiber Manufacturing in the
US
RELATED INTERNATIONAL INDUSTRIES
Textile Weaving & Finishing in the
UK
Household Textile & Soft
Furnishing Manufacturing in the
UK
Synthetic and Natural Textile
Manufacturing in Australia
Cut and Sewn Textile Product
Manufacturing in Australia
Cotton Fabric and Yarn
Manufacturing in China
Silk Fabric and Clothing
Manufacturing
Textile Mills in Canada
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Industry at a Glance
Key Statistics
$41.3bn
Revenue
Annual Growth
2018–2023
-3.6%
Annual Growth
2023–2028
1.6%
Annual Growth
2018–2028
$1.5bn
Profit
Annual Growth
2018–2023
-7.4%
Annual Growth
2018–2023
3.6%
Profit Margin
Annual Growth
2018–2023
-0.8pp
Annual Growth
2018–2023
12,372
Businesses
Annual Growth
2018–2023
-2.7%
Annual Growth
2023–2028
-0.7%
Annual Growth
2018–2028
156k
Employment
Annual Growth
2018–2023
-2.3%
Annual Growth
2023–2028
0.6%
Annual Growth
2018–2028
$7.5bn
Wages
Annual Growth
2018–2023
-2.5%
Annual Growth
2023–2028
0.8%
Annual Growth
2018–2028
Key External Drivers % = 2018–23 Annual Growth
-3.9%
Demand from apparel
manufacturing
2.0%
Trade-weighted index
1.2pp
Homeownership rate
0.1%
Private spending on home
improvements
-2.8%
New car sales
2.5pp
Import penetration into the
manufacturing sector
Industry Structure
POSITIVE IMPACT
Capital Intensity
Low
Concentration
Low
MIXED IMPACT
Revenue Volatility
Medium
Industry Assistance
Medium / Increasing
Regulation & Policy
Medium / Increasing
Technology Change
Medium
Barriers to Entry
Medium / Steady
NEGATIVE IMPACT
Life Cycle
Decline
Industry Globalization
High / Increasing
Competition
High / Steady
Key Trends
COVID-19 shuttered production capabilities
Textile purchases for new homes and renovations are
cooling down
Apparel manufacturers have turned to imports
Growing new car sales is set to sustain revenue generation
Investment in high-output equipment will require less labor
Apparel manufacturers are set to continue offshoring their
operations
Textile mills will continue experiencing substantial
competition
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Medium & Increasing Level of Assistance
Low Product/Service Concentration
Low Capital Requirements
WEAKNESSES
High Competition
Decline Life Cycle Stage
High Imports
Low Profit vs. Sector Average
High Customer Class Concentration
Low Revenue per Employee
OPPORTUNITIES
High Revenue Growth (2023-2028)
Homeownership rate
THREATS
Very Low Revenue Growth (2005-2023)
Low Revenue Growth (2018-2023)
Low Outlier Growth
Low Performance Drivers
Import penetration into the manufacturing sector
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Executive Summary Woven in: Shifting consumer preferences for apparel manufacturing will
lead to increased revenue
The Textile Mills industry includes various manufacturers of fiber, yarn and thread, fabric finishing and coating,
curtain fabric, linen and narrow fabric. Textile mills serve a plethora of downstream markets, including apparel,
automobile and home furnishing manufacturers. Through the five years to 2023, textile mills have experienced
mounting competition from developing countries with low labor costs resulting in shrinking demand from domestic
apparel manufacturers. In response, textile mills have increasingly relied on the automobile and home furnishing
markets to prevent revenue from declining at a faster pace. Revenue for textile mills is set to decline at a CAGR of
3.6% to $41.3 billion, including a 2.7% decrease in 2023 alone.
The shrinking apparel market has highlighted the industry's changing focus. Textile manufacturing can be completed
through automated processes that do not require considerable labor. Thus, domestic textile mills have proven to
invest in automated weaving and spinning mills more than producers in emerging countries which have captured a
growing percentage of the apparel market. In 2020, COVID-19 hit the United States, leading to a shortage of face
masks and medical gowns in the country. Multiple textile mills stepped up by switching their production to these
products and are continuing to produce medical despite the end of the shortage. Increasing price-based competition
from foreign companies will result in declining profit for the industry through the five years to 2023.
Textile mills will continue experiencing substantial competition from low-cost imports through the end of 2028. A rise
in the price of synthetic fiber, one of the key inputs for operators, will allow textile mills to increase selling prices. This
will act as a double-edged sword for operators, as higher selling prices increase revenue but risk deterring markets
with low-cost substitutes readily available. Moreover, a shift in consumer preferences for apparel manufacturing is
set to lead to increased revenue generation. Revenue will grow at an annualized CAGR of 1.6% to $44.8 billion
through the end of 2028.
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Industry Performance
Key External
Drivers
New car sales
Automobile manufacturers use textile mills' products, like narrow fabrics, to fashion seat belts, airbags, seat covers,
vehicle interiors and other automobile components. Consumers purchasing new cars drive sales from automobile
manufacturers, generating revenue gains for textile mills. In 2023, new car sales are set to decrease.
Private spending on home improvements
Private spending on home improvements, upgrades and repairs drives demand for curtains, drapery and other home
furnishings produced by textile mills. A rise in private spending on home improvements generally leads to higher
revenue gains for textile mills. In 2023, private spending on home improvements will decrease.
Import penetration into the manufacturing sector
Import penetration into the manufacturing sector measures the proportion of domestic demand that imports capture.
Textile manufacturing is labor-intensive and most imports come from countries with lower labor costs than those in
the United States. Higher import penetration increases price-based competition and reduces revenue and profit for
domestic textile mills. Import penetration is set to increase in 2023, posing a potential threat to textile mills.
Demand from apparel manufacturing
Apparel manufacturers use products such as woven and nonwoven fabrics as inputs in the production of clothing
and accessories. Increased demand from apparel manufacturers translates to higher industry revenue as textile
mills can negotiate higher selling prices. Conversely, when demand from apparel manufacturers is low, textile mills
have more difficulty selling their products at a competitive price, resulting in revenue decreases. In 2023, demand
from apparel manufacturers is set to decrease.
Trade-weighted index
The trade-weighted index (TWI) measures the value of the US dollar against its major trading partners. An increase
in the TWI marks a rise in the US dollar value, making exports relatively more expensive for foreign trade partners
and imports less expensive for domestic markets. Conversely, a decrease in the TWI marks a drop in the value of
the US dollar in comparison with its major trading partners, making imports relatively more expensive and exports
less costly in international markets. In 2023, the TWI is set to increase.
Homeownership rate
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The homeownership rate represents the proportion of households that own the home in which they live. The higher
the homeownership rate, the higher the chance that house owners will invest in home textiles, driving purchases for
curtains and linens. In 2023, the homeownership rate is set to increase, presenting a potential opportunity for textile
mills.
Current
Performance
Textiles mills' revenue has declined at a CAGR of 3.6% to $41.3 billion
over the past five years, including a decrease of 2.7% in 2023 alone, when
profit will reach 3.6%.
Computer chip shortage limits automobile manufacturing purchases of technical textiles
The Automobile Interior Manufacturing industry (IBISWorld report 33636) purchases textiles in large
volumes to make seat belts, airbags and porous fabrics for seat covers and vehicle interiors.
The onset of the coronavirus pandemic severely crippled the supply chain for computer chips necessary to
manufacture automobiles. As COVID-19 shuttered production capabilities, automobile manufacturers also
dealt with temporary closures.
The economic uncertainty of the initial outbreak caused consumers to pull back large discretionary
spending, including vehicle purchases.
Accommodative interest rates spurred home improvements
The Federal Reserve brought interest rates to a recent low in response to COVID.
Consumers took advantage of low-interest rates and more time spent at home to remodel their homes.
Housing starts also increased spurring consumer purchases for home textiles
As interest rates increase, textile purchases for new homes and renovations are cooling down.
Manufacturers temporarily pivot to produce medical equipment amid the coronavirus pandemic
COVID opened opportunities for textile mills as healthcare professionals in the United States experienced a
shortage of protective equipment.
Many textile mills shifted production to face masks and medical gowns, aiding the government to support
the public health system.
While the shortage of medical textiles has ended, some textile mills continue to produce face masks and
medical gowns.
Low-cost foreign apparel manufacturing shrinks domestic textile revenue
Apparel manufacturers have turned to imports or have offshored their operations. To reduce costs, apparel
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manufacturers are sourcing low-cost inputs from other countries near their operations to the detriment of
domestic textile mills.
While shrinking in their importance to domestic textile mills, apparel manufacturers remain a key market.
The continued encroachment of imported apparel has a significant effect on revenue.
Historical Performance Data
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(People)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
New Car
Sales
(Million)
2014 59,924 12,865 15,735 15,351 189,650 15,686 35,879 8,989 80,116 16.5
2015 56,483 12,787 15,753 15,357 188,790 14,953 37,176 9,218 78,707 17.4
2016 54,655 12,178 15,340 14,954 186,550 13,800 36,085 8,845 76,940 17.5
2017 49,874 11,644 14,566 14,193 178,358 13,829 36,570 8,553 72,615 17.2
2018 49,706 11,454 14,543 14,182 175,568 13,734 38,140 8,458 74,113 17.2
2019 48,263 11,328 14,058 13,700 174,028 13,044 37,256 8,529 72,475 17.0
2020 44,158 10,479 13,609 13,275 166,609 10,752 52,693 7,975 86,099 14.5
2021 45,112 10,536 13,528 13,172 167,844 11,836 44,464 8,057 77,740 15.0
2022 42,427 9,885 13,034 12,711 160,049 8,277 30,621 7,662 64,771 13.7
2023 41,296 9,619 12,687 12,372 155,897 8,241 32,302 7,462 65,358 13.3
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Industry Outlook
Outlook Textile mill revenue will grow 1.6% to $44.8 billion through the end of
2028, when profit will rise to 3.8%.
The return of automobile manufacturing assists revenue growth
Textile mills are set to benefit from the return of automobile manufacturing following the computer chip
shortage.
Growing new car sales is set to sustain revenue generation.
Domestic textile mills hold a slight competitive advantage
Domestic textile mills offer reduced shipping costs and high levels of automation, increasing productivity and
decreasing labor costs.
Investment in high-output equipment will require less labor, increasing domestic textile mills' competitive
advantage.
The conflict in Ukraine is causing an increased manufacturing presence in the United States. Textile mills
want to increase their supply chain control through domestic vertical integration.
Offshoring apparel manufacturers deters new entrants
Apparel manufacturers are set to continue offshoring their operations. Textile mills that supply apparel
manufacturers will likely follow suit and move facilities overseas.
Competition from foreign textile mills and their cheaper imports will take the wind out of new entrants, and
prospective entrants will quit before entering the industry.
Performance Outlook Data
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(People)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
New Car
Sales
(Million)
2023 41,296 9,619 12,687 12,372 155,897 8,241 32,302 7,462 65,358 13.3
2024 41,896 9,702 12,558 12,226 156,155 8,461 31,903 7,493 65,338 13.4
2025 43,008 9,882 12,534 12,180 158,000 8,835 31,529 7,604 65,701 13.8
2026 43,732 9,996 12,461 12,090 158,948 9,033 31,679 7,666 66,378 14.2
2027 44,326 10,091 12,401 12,017 159,691 9,207 31,722 7,715 66,841 14.5
2028 44,806 10,170 12,358 11,961 160,429 9,360 31,674 7,761 67,120 14.7
2029 45,021 10,196 12,287 11,883 160,507 9,423 31,693 7,771 67,292 14.8
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Industry Life Cycle The life cycle stage of this industry is Decline
LIFE CYCLE REASONS
Downstream apparel manufacturers have offshored their operations, limiting domestic demand
The industry's contribution to the overall economy is declining
Product segments remain stable
Contribution to GDP
Lowered because of coronavirus-induced lows, where reduced textile purchases from key markets caused
suppressed revenue generation and heating competition forced enterprises to exit the industry.
Market Saturation
There are many domestic textile mills, leading to a high concentration. Foreign competition and shrinking
downstream markets is forcing some textile mills to exit.
Innovation
More innovation is needed as product lines are segmented and established.
Consolidation
Larger textile mills are expanding by acquiring smaller textile mills. Consolidation is set to intensify as domestic mills
shift towards more technical and niche textiles.
Technology & Systems
Low-cost foreign competition has forced domestic textile mills to shift towards more limited and niche technical
textiles. Such a shift requires significant investment into machinery.
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Products & Markets
Supply Chain Key Buying Industries
1st Tier
Apparel Knitting Mills in the US
Women’s, Girls’ and Infants’ Apparel Manufacturing in
the US
Hosiery Mills in the US
Men's & Boys' Apparel Manufacturing in the US
Costume & Team Uniform Manufacturing in the US
Blind & Shade Manufacturing in the US
2nd Tier
Men's Clothing Stores in the US
Women's Clothing Stores in the US
Children's & Infants' Clothing Stores in the US
Men's & Boys' Apparel Wholesaling in the US
Women's & Children's Apparel Wholesaling in the US
Piece Goods, Notions & Other Apparel Wholesaling in
the US
Key Selling Industries
1st Tier
Crop Services in the US
Cotton Farming in the US
Sheep Farming in the US
Industrial Building Construction in the US
Industrial Machinery & Equipment Wholesaling in the US
2nd Tier
Farm Supplies Wholesaling in the US
Printing, Paper, Food, Textile & Other Machinery
Manufacturing in the US
Water Supply & Irrigation Systems in the US
Farm, Lawn & Garden Equipment Wholesaling in the US
Products & Services
Clothing fabrics hurt by apparel manufacturers utilizing overseas textile mills
Finished and coated fabrics require a more advanced manufacturing process and are heavily utilized by
apparel manufacturers.
Woven fabrics are made with two sets of yarns that interweave at 90-degree angles to each other. Knit
fabrics are made from one continuous yarn looped repeatedly. Both are primarily used in clothing
manufacturing.
Domestic apparel manufacturers are turning to overseas textile mills due to their relatively inexpensive
prices. Apparel companies have also shifted manufacturing operations overseas to save on labor and input
costs.
Shortage of protective equipment necessitates domestic production of nonwoven fabrics
Nonwoven fabrics are made from long fibers bound by chemicals.
Some of these products are disposable, absorptive, or flame retardant which is more capital-intensive than
textiles for apparel.
Medical protective equipment shortage at the height of the pandemic encouraged many mills to use
nonwoven fabrics in production.
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Yarn remains stable as it is a primary input for other textiles
This segment consists of spun yarns and filaments, where spun yarns are made by bonding natural or
manmade fibers together by twisting or spinning them. Filament yarns consist of very long continuous fibers
twisted or grouped together.
Being the primary input for many other industry textiles creates a stable platform for yarn production.
Housing boom benefits home textiles
This segment is comprised of curtains and linens, textile bags and canvas. Other products include
embroideries, flags and banners, upholstery filling and processed mill waste.
Consumers took advantage of low interest rates to purchase new homes and remodel existing ones.
Efforts to reduce consumer waste have increased the popularity of canvas bags.
Demand
Determinants
Downstream industry health
Demand for the Textile Mills industry's products depends largely on the economic health of downstream industries.
In turn, import penetration and consumer spending affect such downstream operators, the latter of which is mainly
determined by per capita disposable income and consumer sentiment. The most important downstream buyers of
textiles are apparel manufacturers, automobile manufacturers and home furnishings manufacturers. The increasing
penetration of imported apparel over the five years to 2022 has negatively affected domestic producers. Additionally,
demand for industry products declined as many operators reduced their outputs or closed their businesses due to
the COVID-19 (coronavirus) pandemic. In line with economic recovery, demand for industry products, namely
apparel, is anticipated to recover towards the end of the current period. Apparel manufacturers abroad are less likely
than domestic manufacturers to source from industry operators due to increased shipping costs, and as a result,
demand for most of the industry's textiles used in apparel has declined. Similarly, automobile interior manufacturing
has declined over the past five years, driven by a sharp decline in automobile manufacturing activities at the hand of
the coronavirus disrupting critical electronic components. As a result, automobile interior manufacturers' demand for
technical textiles has fallen. Conversely, demand from home furnishings manufacturers has risen driven by rising per
capita disposable income and an improving housing market. This last trend is expected to reverse as a result of
rising interest rates deterring new home sales and home-improvements.
Shifts in fashion
Fashion swings and trends can result in unprofitable production runs by downstream apparel manufacturers if
demand for clothes made with certain fabrics changes rapidly. This can be an advantage for US textile
manufacturers over foreign ones as the time to market domestically produced textiles is shorter due to proximity.
Also, since this industry's manufacturers are located in the same country as their main downstream markets, they
have access to more immediate information about domestic demand for different textiles. Additionally, the “made in
USA” label on their products is gaining appeal, as a fashion marker because of its association with increased quality,
domestic job creation and corporate responsibility. Such advantages are especially applicable to the industry's
denim, which is used in the apparel industry's growing and highly fashion-dependent product segment of premium
denim. Sustainability is a recent trait being sought out by consumers. A survey conducted by Cotton Incorporated
reports that 43% of Gen Z consumers actively seek clothing or companies that have sustainable or environmental
practices. Furthermore, Levi Strauss & Co., one of the world's largest brand-name apparel company, recently
launched a “Buy Better, Wear Longer” campaign to rally consumers and manufacturers to a sustainable future.
Consumers purchasing more sustainable apparel/textile offerings might introduce new practices in manufacturing
materials.
Technology and substitutes
Industry operators can produce textiles that use highly automated processes more cost-effective than developing
countries can. The low labor costs of developing countries cease to be a competitive advantage in such cases. Also,
the technological development of textile machinery in developing countries needs to catch up to that of the United
States. Since home furnishing textiles such as curtains, linens and tablecloths are made through highly automated
processes, domestic producers of these products have remained competitive with producers abroad. Some
domestic textile mills are almost completely automated and can churn out thousands of square yards of fabric every
hour with as few as 10 or 20 employees. However, textiles that are produced through labor-intensive processes tend
to be more cost-effectively produced in developing countries with low labor costs. As a result, imported textiles are
the primary substitute for industry products. Imports benefit when the trade-weighted index (TWI) rises since an
appreciating dollar leads to more affordable imports.
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Major Markets
Domestic manufacturers choose high-quality US textile mills for technical textiles
This market is mainly composed of industrial buyers that use textiles as inputs in their products, such as
automobile, aircraft, and marine vessel manufacturers.
Domestic textile mills hold a competitive advantage over foreign competitors because of technologies,
equipment, and research and development programs required to produce and advance these products.
Major buyers of technical textiles use domestic textiles to save on shipping costs as they have not offshored
or outsourced operations.
The computer-chip shortage subdued purchases from automobile manufacturers.
Low interest rates encourage home furnishings for new homes and renovations
The home furnishing market purchases home textiles such as curtains, linens, and tablecloths.
Consumers invested more in their homes with low interest offerings.
Domestic producers of home furnishing textiles hold a competitive advantage through significant investment
in automation, which reduces operating costs and passes savings onto consumers.
Apparel manufacturers choose offshore and outsourced labor, seeking lower costs
Apparel manufacturers purchase textiles to make low-value knitwear including shirts, pants, underwear,
nightwear and outerwear.
Apparel manufacturers are pursuing lower labor costs to price goods more competitively, seeking foreign
textile mills to supply their offshore operations.
International Trade Exports in this industry are High and Decreasing
Imports in this industry are High and Decreasing
Imports from China soar after duty break for textiles
Textile imports from China skyrocketed after the US Trade Representative announced a duty break for
textiles.
A strong US dollar is making imports relatively more affordable than domestic textile mills.
Low-cost imports soar with offshore production
Offshore production of textiles and finished products like apparel has moved supply chains to low-cost
countries. Manufacturers looking for cost savings are favoring foreign-produced textiles.
Uncertainty throughout the supply chain has encouraged domestic manufacturers to purchase from
domestic textile mills to save on shipping. Offshoring of entire supply chains signals increased imports when
supply chain issues ease.
A strong dollar and offshore markets lead to expensive exports
Foreign buyers are contending with rising US prices, opting for cheaper foreign textiles.
Cheaper foreign alternative textiles raise the perceived price of exporting from US textile mills.
Proximity to Canada and Mexico stimulates exports
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Domestic textile mills benefit from a consumer shift to purchase apparel items in the US.
Trade agreements between the United States, Canada and Mexico significantly diminish tariffs.
Manufacturers and businesses also benefit from low shipping costs.
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Geographic Breakdown
Key Insights
Texas
1,775 Est.
Most Establishments
Georgia
$6.9bn
Highest Revenue
Minnesota
15.3%
Fastest Growth
West Virginia
-16.3%
Slowest Growth
Vermont
$93,447.4
Highest Average
Wage
North Carolina
26,649
Most Employees
State Data for Textile Mills in the US (2023)
State Establishments
Establishments
Growth Rate
(2018-2023)
Revenue
Revenue
Growth Rate
(2018-2023)
Employment
Employment
Growth Rate
(2018-2023)
Wages
Wages
Growth Rate
(2018-2023)
Alabama 165 -3.68% $915.2m 2.73% 4,199 2.79% $160.4m 3.23%
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Business Locations Southeast lends proximity to cotton growers
Textile mills in the southeast gain an advantage by being close to cotton growers, as it is the industry's most
important fiber.
Long-established textile mills have vertically integrated and operated upstream fiber, yarn and thread mills
where they are closest to cotton sources.
The Southeast is also close to Mexico and has many ports to facilitate trade.
Major ports, more cotton in the West
California produces a large quantity of cotton, reducing shipping costs for inputs for the region's textile mills.
The region has many ports to trade with major export destinations, including Canada, Mexico and Honduras
The Great Lakes offer a gateway to Canada
Major trade partner, Canada, lies just to the north which enables textile mills to offer low shipping charges.
Domestic textile mills located in this region that have not vertically integrated upstream fiber mills benefit
from their proximity to cotton growers in the southeast.
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Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
The piecemeal nature of textiles defines market share
Textile mills are comprised of many subindustries, none of which account for a notable share of total
industry revenue.
The fragmented nature pressures textile mills to compete on price and encourages product development.
Competition for automation sparks efficiency
Large textile mills can invest in highly automated mills. Those who cannot afford these investments are
forced to exit the industry, further enabling more productive mills to expand their market share.
Consolidation continues as large textile mills buy up smaller mills to expand textile offerings.
Key Success
Factors
IBISWorld identifies over 200 Key Success Factors for a business. The most important for this industry are:
Access to niche markets:
High profit is usually more attainable in specialized markets with less competition.
Proximity to key suppliers:
Being within a short distance of raw material suppliers (e.g. cotton suppliers or polyester fiber suppliers) can
alleviate potential logistical problems and cut down on transportation costs.
Economies of scale:
Companies that can reduce the marginal cost of the textiles they produce have a competitive advantage. Investing
in highly automated mills is usually the way operators do this.
Establishment of export markets:
Companies that develop networks to sell their products abroad spread their risk when confronted with domestic and
global economic downturns.
Supply contracts in place for key inputs:
Companies that secure contracts for fixed prices for inputs are protected from price volatility, which can affect cotton
markets in particular.
Having a good reputation:
High-quality products help differentiate companies from competitors abroad, retain business and attract new
business.
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Cost Structure
Benchmarks
Wages
Automation is providing relief from labor costs
Textile mills able to invest in automated machinery have been
able to replace workers, significantly reducing labor costs.
Modern textile mills that are almost entirely automated can
produce thousands of square yards of fabric every hour with as
few as 10 or 20 employees.
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Purchases
Natural and synthetic fibers define purchase costs
Natural fibers, like cotton and synthetic fibers are crucial for
textile mills. Price hikes can cause purchase costs to skyrocket,
burning profit.
Supply chain disruptions caused by the coronavirus have
increased costs from raw materials sourced overseas.
Utilities
Fluctuating energy costs are eating into profit
Textile mills require significant amounts of energy to produce
textiles.
The invasion of Ukraine put upward pressure on energy costs,
digging into profit more than usual.
Basis of
Competition
Competition in this industry is High and the trend is Steady
Operators in the Textile Mills industry experience high levels of
competition from other domestic operators and textile manufacturers
from foreign nations.
In both cases, the primary aspects operators compete on are the price, quality and range of products offered, along
with the ease of access to markets.
INTERNAL COMPETITION
Internal competition is high, with operators competing across all industry
segments and each operator having a little market share.
Price-based competition is the most important form of competition for yarns, threads and basic textiles. These
products are largely undifferentiated between textile mills. Price can be kept in check by investing in automated mill
equipment, which reduces labor and overall costs of production. Such investments are the main reason the US
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textile industry has remained relevant during the decades-long trend of outsourcing apparel manufacturing and,
effectively, textile manufacturing to developing countries. That is, the US textile industry still produces textiles cost-
effectively, so long as the downstream buyer is located nearby and does not require major shipping costs.
As the level of product differentiation increases, price becomes a less important basis of competition and quality
grows increasingly important. Quality is widely considered a characteristic of US-made fabrics and many consumers
and corporations are willing to pay a premium. A recent Cotton Incorporated survey shows that respondents rated
"higher quality" as twice as important as "more fashionable" in their clothing and hence, fabric choices. Perceptions
of improved quality largely explain the rise of domestically made premium denim (it is a fashion marker as well,
suggesting the two are interlinked for some products).
If a textile mill has a wide product range, it can operate as a one-stop shop for downstream buyers and can reduce
its costs for input purchases. Large-scale contracts are more easily attainable for mills with a breadth of product
offerings; these contracts guarantee a set revenue flow for a given period. The industry's major companies operate
across a range of textile subindustries, which gives them access to such contracts and expands their market share.
Location is a basis of competition and is why many textile mills are located in the Southeast or California. These
locations are favorable because they are located near cotton farms, which provide the industry's main natural input.
Proximity to cotton fields reduces shipping costs and helps mills stay in close contact with the farmers from whom
they source their inputs. This contact can aid in establishing long-term contracts for cotton procurement; these
contracts can be beneficial because cotton harvests depend largely on the weather and prices can be volatile. Also,
locating near shipping ports is important for mills that export large quantities of their textiles. The export market is
expected to generate more than one-quarter of industry revenue, highlighting the importance of access to shipping
ports.
EXTERNAL COMPETITION
Industry revenue is adversely affected by imported textiles, which are
expected to satisfy over half of the domestic demand in 2022.
The same factors that influence internal competition affect external competition, though the price is elevated in
importance when imports are concerned. Although foreign textile mills have access to lower-wage labor, domestic
producers are known to have the most advanced and automated mill equipment and technology, enabling them to
compete with imports on the basis of price. Although, some importers are stepping up their investment in automated,
labor-saving equipment, like China. The dollar's appreciation through the years to 2023 has aided imports' price
competitiveness in the United States. Particularly, China accounts for the vast majority of imports.
The larger story relating to the industry's decline, which is a result of external competition, pertains to the export
market. As apparel manufacturers continue to exit the United States, which they began doing in large numbers in
the 1970s, they take with them their business for textiles. The US textile industry has not been able to compete with
low-cost East Asian countries in supplying the apparel manufacturers there. While exports currently account for a
notable percentage of industry revenue, the value of industry exports has declined over the past several decades
due to the offshoring of apparel manufacturing.
Barriers to
Entry
Barriers to Entry in this industry are Medium and the trend is Steady
Legal
Textile mills do not require licenses or additional
credentials to operate. They must adhere to OSHA
regulations and state/local labor laws as well as
environmental laws.
Start-up Costs
Starting a textile mill has high capital costs through
obtaining machinery, especially highly automated ones.
Differentiation
Competition is high as downstream buyers have plenty of
choices, choosing based on price and quality.
Labor Intensity
Textile mills depend on skilled workers for production and
research and development staff for engineering technical,
coated or nonwoven textiles.
Barriers to Entry Checklist
Competition High
Concentration Low
Life Cycle Stage Decline
Technology Change Medium
Regulation & Policy Medium
Industry Assistance Medium
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Industry
Globalization
Globalization in this industry is High and the trend is Increasing
The Textile Mills industry experiences a high level of globalization. A large quantity of textiles is exported and imported
and textile trade has increased over the five years to 2022. The industry's exports go primarily to Mexico, Canada,
Honduras and the Dominican Republic. These exports are often used in apparel manufacturing and then imported into
the United States as clothing. Textile imports come mainly from China, India, Turkey and Pakistan.
Additionally, many industry operators have operations in multiple countries or have moved their operations entirely
abroad. They have expanded into developing countries to take advantage of lower wage costs and less stringent
regulations, which make them more competitive in markets that demand labor-intensive textiles. Having a footprint in
multiple countries also expands its supply chains, which can increase its vertical integration and decrease costs. Milliken
& Company has production facilities in the United States, Europe, Asia and Brazil. Mount Vernon Mills Inc. has facilities in
the United States, Asia, Latin America and the Caribbean. Elevate Textiles Inc. currently maintains operations in the
United States, China and Mexico, among others. To the detriment of these globalized operators, COVID-19 spread
rapidly across the globe, forcing many countries to close their borders and impose national lockdowns in 2020. While the
global economy has largely recovered, textile mills with the international supply chain are expected to take a hit from
logistics disruptions in 2022. Additional logistics disruptions have occurred as a result of the Russian invasion of Ukraine.
The nature of the conflict introduces increased volatility to industry globalization.
Industry globalization is set to increase through the five years to 2028, despite the forecast decrease in the value of the
US dollar. As domestic labor costs continue to account for a notable share of revenue, textile mills will continue to be
enticed by lower operations costs and higher returns.
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Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
Elevate Textiles All Star 500+ Employees 1,647.8 3.99 59.0
American & Efird Incumbent 500+ Employees 114.4 0.28 4.1
Uline Disruptor 500+ Employees 41.0 0.1 1.5
Texollini Company Disruptor 100–499 Employees 22.5 0.05 0.8
United Bags Golden Goose 20–99 Employees 8.1 0.02 0.3
Lafayette Textile Industries Laggard 20–99 Employees 6.5 0.02 0.2
Richline Textiles Laggard 20–99 Employees 4.9 0.01 0.2
California Cloth Foundry Rising Star 10–19 Employees 1.9 0 0.1
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Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
Elevate Textiles, Inc.
Company Overview
Brands & Trading
Names
Elevate Textiles
Description Elevate Textiles is a private company with an estimated 15,000 employees. In the US, the company has a notable
market share in at least one industry: Textile Mills, where they account for an estimated 3.9% of total industry
revenue.
COMPANY TYPE Private Company
TOTAL COMPANY
REVENUE
$1.6bn
EMPLOYEES 15,000
Financial
Performance
Elevate Textiles, Inc. - financial performance *
Year
Revenue
$m
Growth
% change
Operating Income
$m
Growth
% change
2019 1,925.7 381.7 81.7 558.9
2020 1,762 -8.5 72.2 -11.6
2021 1,800 2.2 69.8 -3.3
2022 1,692.9 -5.9 61.1 -12.5
2023 1,647.8 -2.7 59 -3.4
2024 1,671.7 1.5 60.6 2.7
Source: IBISWorld
Note: * Estimates
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Elevate Textiles, Inc.
Company Overview
Industry Market
Share, Revenue
and Profit
Estimated Industry Market Share
3.99% Strong
Current Year
(2023)
Estimated Industry Revenue
$1.6bn Strong
Current Year
(2023)
Estimated Profit Margin
3.58% Moderate
Current Year
(2023)
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American & Efird LLC
Company Overview
Brands & Trading
Names
D-Core RFD D-Core Indigo Industrial Fabrics Ludlow Furniture Twines & Cords Excell / Perma
Spun Anecord Poly Anecord Nylon A&E Anecot Plus Anecot Plus RFD
Description American & Efird is a private company with an estimated 9,739 employees. In the US, the company has a notable
market share in at least one industry: Textile Mills, where they account for an estimated 0.3% of total industry
revenue.
COMPANY TYPE Private Company
TOTAL COMPANY
REVENUE
$114.4m
EMPLOYEES 9,739
Financial
Performance
American & Efird LLC - financial performance *
Year
Revenue
$m
Growth
% change
Operating Income
$m
Growth
% change
2019 133.7 -63.3 5.7 -49.6
2020 122.4 -8.5 5 -12.3
2021 125 2.1 4.9 -2
2022 117.6 -5.9 4.2 -14.3
2023 114.4 -2.7 4.1 -2.4
2024 116.1 1.5 4.2 2.4
Source: IBISWorld
Note: * Estimates
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American & Efird LLC
Company Overview
Industry Market
Share, Revenue
and Profit
Estimated Industry Market Share
0.28% Moderate
Current Year
(2023)
Estimated Industry Revenue
$114.4m Moderate
Current Year
(2023)
Estimated Profit Margin
3.58% Moderate
Current Year
(2023)
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Uline, Inc.
Company Overview
Description Uline is a private company with an estimated 8,200 employees. In the US, the company has a notable market share
in at least 16 industries: Textile Mills, Cardboard Box & Container Manufacturing, Coated & Laminated Paper
Manufacturing, Paper Product Manufacturing, Plastic Film, Sheet & Bag Manufacturing, Plastic Products
Miscellaneous Manufacturing, Steel Rolling & Drawing, Metal Can & Container Manufacturing, Hardware
Manufacturing, Heating & Air Conditioning Equipment Manufacturing, Forklift & Conveyor Manufacturing, Power
Tools & Other General Purpose Machinery Manufacturing, Household Furniture Manufacturing, Medical Instrument
& Supply Manufacturing, Art & Office Supply Manufacturing, Paper Bag & Disposable Plastic Product Wholesaling
and Cardboard Box & Container Manufacturing. Their largest market share is in the Plastic Products Miscellaneous
Manufacturing industry, where they account for an estimated 4.7% of total industry revenue.
COMPANY TYPE Private Company
TOTAL COMPANY
REVENUE
$41.0m
EMPLOYEES 8,200
Other Industries Cardboard Box & Container Manufacturing in the US
Coated & Laminated Paper Manufacturing in the US
Paper Product Manufacturing in the US
Plastic Film, Sheet & Bag Manufacturing in the US
Plastic Products Miscellaneous Manufacturing in the US
Steel Rolling & Drawing in the US
Metal Can & Container Manufacturing in the US
Hardware Manufacturing in the US
Heating & Air Conditioning Equipment Manufacturing in the US
Forklift & Conveyor Manufacturing in the US
Power Tools & Other General Purpose Machinery Manufacturing in the US
Household Furniture Manufacturing in the US
Art & Office Supply Manufacturing in the US
Paper Bag & Disposable Plastic Product Wholesaling in the US
Analyst Insights Uline Inc begins construction on new distribution center
November 4th, 2021 The construction of a new Uline Inc. (Uline) distribution center has commenced after a
successful deal with Collier County, Tennessee commissioners. The project is being undertaken by Mortenson and
DeAngelis Diamond construction companies, and will cost Uline approximately $96.0 million. The facility will
consist of a 937,000-square-foot, 40-foot clear height, cross-docked precast panel with a structural steel
framework warehouse, and will serve as the regional distribution center for Collier County and the surrounding
area. The project is set to be completed by early 2023.
New Activity
Uline eyes expansion with purchase of 230 acres
In July of 2022, Uline Inc. (Uline) announced the purchase of 230 acres in Kenosha County, WI, for the sum of $23.6
million. Though no announcments have yet been made about the property though it is expected that the company
will open further production plants in order to secure supplies for downstream customers in an increasingly
uncretain economic climate, regarding recession fears and supply chain disruptions.
New Activity
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Uline, Inc.
Company Overview
Industry Market
Share, Revenue
and Profit
Estimated Industry Market Share
0.1% Moderate
Current Year
(2023)
Estimated Industry Revenue
$41.0m Moderate
Current Year
(2023)
Estimated Profit Margin
3.58% Moderate
Current Year
(2023)
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Texollini Company
Company Overview
Brands & Trading
Names
Texollini
Description Texollini Company is a private company with an estimated 250 employees. In the US, the company has a notable
market share in at least one industry: Textile Mills, where they account for an estimated 0.1% of total industry
revenue.
COMPANY TYPE Private Company
TOTAL COMPANY
REVENUE
$22.5m
EMPLOYEES 250
Financial
Performance
Texollini Company - financial performance *
Year
Revenue
$m
Growth
% change
Operating Income
$m
Growth
% change
2019 26.3 -63.5 1.1 -68.6
2020 24.1 -8.4 1 -9.1
2021 24.6 2.1 1 0
2022 23.1 -6.1 0.8 -20
2023 22.5 -2.6 0.8 0
2024 22.8 1.3 0.8 0
Source: IBISWorld
Note: * Estimates
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Texollini Company
Company Overview
Industry Market
Share, Revenue
and Profit
Estimated Industry Market Share
0.05% Moderate
Current Year
(2023)
Estimated Industry Revenue
$22.5m Moderate
Current Year
(2023)
Estimated Profit Margin
3.58% Moderate
Current Year
(2023)
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United Bags, Inc.
Company Overview
Description United Bags is a private company with an estimated 46 employees. In the US, the company has a notable market
share in at least one industry: Textile Mills, where they account for an estimated 0.0% of total industry revenue.
COMPANY TYPE Private Company
TOTAL COMPANY
REVENUE
$8.1m
EMPLOYEES 46
Financial
Performance
United Bags, Inc. - financial performance *
Year
Revenue
$m
Growth
% change
Operating Income
$m
Growth
% change
2019 9.5 -70.4 0.4 -60
2020 8.7 -8.4 0.4 0
2021 8.9 2.3 0.3 -25
2022 8.4 -5.6 0.3 0
2023 8.1 -3.6 0.3 0
2024 8.3 2.5 0.3 0
Source: IBISWorld
Note: * Estimates
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United Bags, Inc.
Company Overview
Industry Market
Share, Revenue
and Profit
Estimated Industry Market Share
0.02% Moderate
Current Year
(2023)
Estimated Industry Revenue
$8.1m Moderate
Current Year
(2023)
Estimated Profit Margin
3.58% Strong
Current Year
(2023)
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Operating Conditions
Capital
Intensity
The level of capital intensity is Low
The Textile Mills industry is characterized by a low level of
capital intensity. Over the five years to 2023, IBISWorld
estimates that the level of capital intensity experienced by
industry operators has declined. In 2023, the average
industry operator is anticipated to allocate $0.09 on capital
for every $1.00 spent on labor. Still, the level of capital
intensity an operator experiences varies based on their
size and the type of products they primarily produce.
Companies make capital expenditures for replacements
and improvements in machinery and equipment. Since
industry players are increasingly taking advantage of
leasing arrangements on expensive weaving and spinning
equipment to help automate their facilities, their
manufacturing operations are more capital-intensive than
this figure suggests.
Investment in mill equipment that increases automation has
been significant over the past decade. These investments
have ensured the industry's relevance during a period
when many of its traditional customers, including apparel
manufacturers, have been offshored and discontinued their
business with domestic textile mills. Increasing automation
will enable domestic mills to compete better in markets for
home furnishings textiles and technical textiles, the former
of which is produced particularly cost-effectively with
automated equipment.
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Technology &
Systems
Potential Disruptive Innovation: Factors Driving Threat of Change
Level Factor Disruptive
Effect
Description
Low Rate of
Innovation
Unlikely A ranked measure for the number of patents
assigned to an industry. A faster rate of new
patent additions to the industry increases the
likelihood of a disruptive innovation occurring.
High Innovation
Concentration
Likely A measure for the mix of patent classes
assigned to the industry. A greater
concentration of patents in one area increases
the likelihood of technological disruption of
incumbent operators.
Medium Ease of Entry Potential A qualitative measure of barriers to entry.
Fewer barriers to entry increases the
likelihood that new entrants can disrupt
incumbents by putting new technologies to
use.
Very Low Rate of Entry Very
Unlikely
Annualized growth in the number of
enterprises in the industry, ranked against all
other industries. A greater intensity of
companies entering an industry increases the
pool of potential disruptors.
High Market
Concentration
Likely A ranked measure of the largest core market
for the industry. Concentrated core markets
present a low-end market or new market entry
point for disruptive technologies to capture
market share.
The rate of new patent technologies entering the industry is low, which limits the potential for innovations. A low rate does
not mean that innovations cannot occur, just that the likelihood of some innovation materializing as a threat is lower.
However, the concentration of technologies is high in this industry. This suggests that industry operators have exposure to
potentially unforeseen areas of innovation.
Industry operators are exposed to a low rate of new entrants and a moderate level of entry barriers. This combination of
factors creates an environment where entry trends are not a key threat of disruption.
The major markets for this industry are highly concentrated, which implies that the market has a focus on key customer
segments. This presents an opportunity for strategic entrance into lower-end markets or unserved markets for innovations
to take on a disruptive trajectory.
The Textile Mills industry is relatively resistant to technological disruption.
Historically, synthetic fibers have threatened industry companies, but in 2019, the industry has fully evolved to compete with
synthetic fiber manufacturers. Barring any new synthetic fibers entering the market, the industry is not likely to experience
any significant disruptions in the near future.
The level of technology change is Medium
The Textile Mills industry's technological change is most evident in its
increasing use of automated manufacturing equipment.
Moreover, as the industry increases its focus on technical textiles, as it has done over the five years to 2023 and is set to
continue, the technological change of its products has accelerated. In fact, the product segments that have grown for the
industry (home furnishings textiles and technical textiles) have done so largely because of the technological changes that
have occurred in production processes and products, respectively.
Yarn and fabric producers can increase their returns to scale by using automated equipment. The payoffs from investing in
automated mill equipment continue to increase as mechanized fabric and yarn production get faster. The Congressional
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Research Service reports that modern industrial looms use air jets to weave at speeds of 2,000 picks per minute; this
represents a major increase over the 200 picks in 1980 that was once considered fast. A growing source of revenue for US
textile mills in domestic and global markets has been the production of textiles manufactured through highly automated
processes. These textiles are largely composed of home furnishings textiles like curtains and tablecloths. Manufacturers in
the United States (as well as Japan and South Korea) have proven to be much more than manufacturers in developing
countries to invest in weaving and spinning mills that cost tens of thousands of dollars. In contrast, Chinese manufacturers
have begun increasing their investment in such equipment, partly to keep their sales in the United States strong.
As industry operators continue to enter more specialized markets, the technological advancement of their products also
increases. Technical textiles are mainly used by the automobile industry, and while most automotive textiles are interior
fabrics, some automotive textiles, such as airbags, require a high level of engineering to develop and improve. Technical
textiles include geosynthetic textiles and porous fabrics used in civil engineering projects. Architectural textiles, commonly
found stretched atop stadiums, airports and shopping centers, are a further example of highly engineered textiles built to
specifications. These textiles can also be found on the outsides of wind turbine blades. Narrow fabrics are a further product
segment in which the industry has advanced, as the tensile strength (i.e., strength when stretched) of the safety straps
produced by narrow fabrics mills continues to improve.
Revenue
Volatility
The level of volatility is Medium
Manufacturers moving offshore heats up competition
Enticed by lower wages and production costs, textile mills and downstream manufacturers have moved operations
overseas.
The reduction of domestic output has led to new entrants deterred from starting a domestic textile mill, opting for
foreign operations.
Low-cost imports contribute to fluctuations
Imports are satisfying a large portion of domestic demand.
Foreign textile mills can pass off cost savings in the final product, capturing additional market share.
Regulation &
Policy
The level of regulation is Medium and the trend is Increasing
Clean Air and Water Act
These federal laws determine the level of chemical discharge that is permitted into the nation's air and waterways.
Occupational Health and Safety Administration
Textile mills must adhere to labor and wage laws passed by states' OSHA. These safety standards generally mirror federal
OSHA standards and relate to machinery guards, gear housing covers, machinery stopping devices, workspace and
obstruction rules, noise control limits and cotton dust controls.
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Coronavirus regulations
Textile mills were deemed essential and were permitted to operate during state mandated closures in response to the
coronavirus. Although, health and safety guidelines remain in place such as vaccination status.
US customs duties
Textile mills are subject to US customs duties for imported fibers, threads and textiles.
Industry
Assistance
The level of industry assistance is Medium and the trend is Increasing
Public
Import duty on textiles
Imported textiles are subject to taxes, typically paid as a percentage based on the value of the product. A duty break was
given in March 2020 in response to the shortage of textiles. This ended as of September 2021.
Duty-advantaged programs
The African Growth and Opportunity Act, the Caribbean Basin Trade Partnership Act and the (formerly known as the North
America Free Trade Agreement) give eligibility for duty-free textile imports.
COVID-19 aid
Small businesses were offered multiple rounds of the Paycheck Protection Program to retain workers and remain
operational. All COVID-related relief programs have ended as of December 2021.
Private
Textile mills don't receive any private assistance.
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Additional Resources
Additional
Resources
Textile World
http://www.textileworld.com
Industrial Fabrics Association International
http://www.ifai.com
US Industrial Fabrics Institute
http://usindustrialfabrics.ifai.com
National Council of Textile Organizations
http://www.ncto.org
US Census Bureau
http://www.census.gov
Industry Jargon KNIT FABRIC
A fabric created by the interlooping of several pieces of yarn or thread to create a stretchy consistency.
NONWOVEN FABRIC
A material that is often nonflammable or water-resistant and used in the production of specialized uniforms for
military and fire department officials.
OFFSHORING
The transfer of manufacturing operations to another country, regardless of whether the work is outsourced or stays
within the same corporation or company.
Glossary BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
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INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)
The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
48. Textile Mills in the US January 2023
IBISWORLD.COM 48
Call Preparation Questions
Role Specific
Questions
Sales & Marketing
Industry revenue is adversely affected by imported textiles, which are expected to satisfy half of domestic demand.
How is your company affected by rising imports?
High import competition has limited industry revenue growth, as imports satisfy a significant share domestic demand
for industry products
Demand for the Textile Mills industry's products depends largely on the economic health of downstream industries.
Are your company's sales heavily dependent on the health of the US economy?
Many of the companies key downstream markets, such as automobile, apparel and home furnishing manufacturing,
are directly affected by the health of the US economy.
Strategy & Operations
Companies that secure contracts for fixed prices for inputs are protected from price volatility, which can affect cotton
markets in particular. Has your company been exposed to volatile input prices over the past five years?
The price of the key input for industry operators, synthetic fibers, increased moderately over the past five years but
has historically not exhibited much volatility.
US textile operators have a competitive advantage in technical textiles because the technologies, equipment and
research and development programs required to produce and advance these products are more prevalent in the
United States than in developing countries. Is your company investing heavily in R&D to meet changing consumer
preferences?
Increased specialization in technical textile production has increased the need for R&D.
Technology
Although foreign textile mills have access to lower-wage labor, domestic producers are known to have the most
advanced and automated mill equipment and technology, enabling them to compete with imports on the basis of
price. Is your company leveraging new technology?
Textile manufacturing can be completed through automated processes that do not require considerable labor.
As a result, many operators have turned to automation to keep afloat.
Labor is a significant cost for textile mills. Have you been able to reduce wage costs through automation over the
past five years?
Many operators have attempted to curb wage costs by investing in more automated machinery. However, wages
have increased as a share of revenue over the past five years.
Compliance
The Textile Mills industry receives a moderate amount of industry assistance in the form of tariffs and industry
associations, including the National Council of Textile Organizations. How have international tariffs impacted your
ability to import and export products?
Due to the North American Free Trade Agreement, operators are able to export products to key foreign markets with
relative ease.
The government imposed strict protocols to curb the spread of the coronavirus. Have any regulatory expenses
significantly impacted profitability during the COVID-19 period?
Amid the coronavirus pandemic, industry operators experienced higher expenses as they must provide employees
with masks and gloves to prevent coronavirus spread.
Finance
Natural and synthetic fibers represent the largest cost industry operators incur. How has input price volatility affected
profit margins over the past 12 months?
Since input prices have remained relatively stable, they have not had a significant impact on profit margins.
Despite rising demand from certain downstream markets and textile mills' expansion to more specialized markets,
textile mills have contented with increasing price-based competition from rising internal and external threats. How do
your company's profit margins compare to your main competitors'?
49. Textile Mills in the US January 2023
IBISWORLD.COM 49
Profit margins do not vary greatly between operators based on size.
Operators able to command higher profit margins generally cater to specialized markets with fewer internal and
external threats to compete with.
External Impacts
Questions
Impact: Import penetration into the manufacturing sector
Higher import penetration increases price-based competition and results in reduced revenue and profit for domestic
textile mills. Do you track changes in import penetration? Are you able to compete with lower labor-cost countries?
Import penetration into the manufacturing sector measures the proportion of domestic demand that imports capture.
Textile manufacturing is labor intensive, and the vast majority of imports come from countries with lower labor costs
relative to those in the United States.
Impact: New car sales
In 2021, new car sales are expected to increase. How do changes in the number of new car sales affect your
company? How do you plan to mitigate this threat?
Industry products are used by automobile manufacturers to fashion seatbelts, airbags, seat covers, vehicle interiors
and other automobile components. Thus, a rise in new car sales generally means greater demand from automobile
manufacturers and higher revenue gains for industry operators.
Impact: Private spending on home improvements
Over the past five years, housing starts and private spending on home improvements have both increased, aided by
growing disposable income. Do you regularly monitor changes in disposable income and spending on home
improvements? How do you prepare for changes in these drivers?
Private spending on home improvements, upgrades and repairs affects demand for curtains, drapery and other
home furnishings produced by textile mills. Therefore, a rise in private spending on home improvements generally
leads to higher revenue gains for industry operators.
Internal Issues
Questions
Issue: Access to niche markets
Do you have a strong reputation among customers? Are you known for your reliability and performance?
High profit margins are usually more attainable in specialized markets with less competition.
Issue: Proximity to key suppliers
Are you located near major suppliers? Do you have good relations with product suppliers?
Being within a short distance of raw material suppliers (e.g. cotton suppliers or polyester fiber suppliers) can
alleviate potential logistical problems and cut down on transportation costs.
Issue: Economies of scale
Are you able to leverage economies of scale? Does your company rely on economies of scale to maintain a healthy
profit margin? What is your budget for expanding operations?
Companies that can reduce the marginal cost of the textiles they produce have a competitive advantage. Investing
in highly automated mills is usually the way operators do this.
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